In the Keynesian Model with Efficiency Wages

question 15

Multiple Choice

In the Keynesian model with efficiency wages

• A)the full-employment line is determined where the quantity of labor demanded equals the quantity of labor supplied.
• B)the full-employment level is determined at the intersection of the labor demand curve and the efficiency wage line.
• C)an increase in labor supply increases employment.
• D)a decrease in labor supply shifts the FE line to the left.

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Definitions:

Internal Locus

A psychological concept referring to individuals who believe they can control their life events and outcomes through their own efforts.

Dependence

The state of relying on or being controlled by something or someone else.

Low Energy Level

A state of reduced physical or mental activity, often signifying decreased vitality and stamina available for tasks.

Tolerance For Ambiguity

The ability to remain comfortable and function effectively in situations that are uncertain, unclear, or unfamiliar.